Core Insights - The transaction involving The Link at Uptown is the largest office property sale in the Dallas-Fort Worth area year-to-date, with a sale price of $218 million [1][8] - The buyer, Cousins Properties, is a well-respected real estate investment trust based in Atlanta [2] - The sale reflects strong investor confidence in the Dallas-Fort Worth market, highlighting its resilience and growth potential [3][5] Company Overview - Newmark Group, Inc. is a leading commercial real estate advisor and service provider, facilitating the sale of The Link at Uptown [1] - For the twelve months ending March 31, 2025, Newmark generated revenues exceeding $2.8 billion and operates approximately 165 offices globally with around 8,100 professionals [6] Property Details - The Link at Uptown is a 25-story Class AA office tower built in 2021, encompassing 292,000 square feet and featuring luxury amenities [3][4] - The property has a diverse tenant base with leases signed post-pandemic, indicating potential for future rent growth [3] Market Context - Dallas-Fort Worth is projected to lead the nation in employment and population growth through 2026, showcasing a strong post-pandemic job recovery and high return-to-office rates [5]

Core Viewpoint - Newmark Group (NMRK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive earnings outlook that could lead to increased stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are a significant factor influencing stock price movements [2][4]. - Rising earnings estimates for Newmark Group suggest an improvement in the company's underlying business, likely resulting in higher stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Performance of Newmark Group - For the fiscal year ending December 2025, Newmark Group is expected to earn $1.45 per share, with a 3.9% increase in the Zacks Consensus Estimate over the past three months [8].

Core Insights - Newmark Group reported strong Q2 2025 earnings, exceeding analyst expectations with non-GAAP EPS of $0.31 and GAAP revenue of $759.1 million, reflecting double-digit growth from the previous year [1][2] - The company raised its full-year 2025 guidance, anticipating total revenue between $3.05 billion and $3.25 billion, and adjusted EPS of $1.47 to $1.57 [10] Financial Performance - Non-GAAP EPS increased by 40.9% year-over-year from $0.22 in Q2 2024 to $0.31 in Q2 2025 [2] - GAAP revenue rose by 19.9% year-over-year from $633.4 million in Q2 2024 to $759.1 million in Q2 2025 [2] - Adjusted EBITDA grew by 32.1% year-over-year, reaching $114.0 million [2] - Net income (GAAP, fully diluted) increased by 39.8% year-over-year, from $20.6 million in Q2 2024 to $28.8 million in Q2 2025 [2] Business Segments and Growth Drivers - All key business segments experienced double-digit revenue growth, driven by organic expansion [5] - Management services and servicing fees grew by 13.6%, marking eight consecutive quarters of year-over-year gains [5] - The leasing and other commissions segment increased by 13.8%, supported by a rebound in office and retail leasing in major U.S. cities [6] - The capital markets segment saw a revenue increase of 37.9%, with notable growth in commercial mortgage origination fees and investment sales [7] Operational Efficiency - Non-compensation expenses rose by only 3.1%, significantly lower than the 19.9% increase in total revenues, indicating effective expense control [8] - Adjusted free cash flow improved to $95.9 million, up from $38.7 million in Q2 2024 [8] Strategic Focus and Future Outlook - The company is focusing on technology integration, client relationship strengthening, and global expansion, investing in AI and data analytics [4] - Management plans to maintain a conservative balance sheet while growing recurring fee-based revenue streams [4] - The company expects adjusted EBITDA for FY2025 to be between $523 million and $573 million, an increase from earlier guidance [10]

SEATTLE, July 30, 2025 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, announces the Company has arranged a $435 million refinancing on behalf of Nitze-Stagen & Co., Inc. and Daniels Real Estate for Starbucks Center, a landmark office property prominently located at 2401 Utah Avenue South in Seattle's SoDo District. The financin ...

Financial Data and Key Metrics Changes - The company reported total revenues of $759.1 million, an increase of 19.9% compared to $633.4 million in the previous year [11] - Adjusted EPS increased by 41% to $0.31 from $0.22, demonstrating strong operating leverage [7][14] - Adjusted EBITDA was $114 million, up 32.1% from $86.3 million, with an adjusted EBITDA margin improvement of 139 basis points to 15% [14] Business Line Data and Key Metrics Changes - Management services, servicing, and other revenues increased by 13.6%, driven by approximately 30% growth in valuation and advisory business [11] - Leasing revenues rose by 13.8%, led by double-digit growth in retail volumes and improving office activity in key markets [11] - Capital markets revenues increased by 37.9%, reflecting a 135% improvement in total debt volumes [12] Market Data and Key Metrics Changes - Newmark was ranked as the number one office broker in the U.S. for investment sales in the first half of 2025 [9] - The company improved to number three among global sales brokers across all property types based on preliminary figures [10] - The company gained market share in capital markets, with significant growth in data centers and higher office and multifamily activity [12] Company Strategy and Development Direction - The company is focused on expanding its occupier solutions and leasing footprint globally, providing comprehensive real estate solutions in nearly 100 countries [8] - Newmark is building out its international platform, particularly in Europe and Asia, with a strong emphasis on organic growth [25][29] - The company plans to pivot towards M&A opportunities in the second half of the year, particularly in management services [27][67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the capital markets activity, indicating a strong pipeline and potential for continued growth [25][56] - The company raised its full-year outlook, expecting total revenues between $3.05 billion and $3.25 billion, and adjusted EPS between $1.47 and $1.57 [17] - Management noted that New York City remains resilient despite potential political uncertainties, emphasizing the city's unique talent pool [58][59] Other Important Information - The company introduced a new reporting metric, adjusted free cash flow, which showed a significant year-over-year improvement of 121.4% to $228 million [16] - Total expenses for adjusted earnings increased by 18.4%, reflecting growth initiatives and higher pass-through costs [13] Q&A Session Summary Question: How has the opportunity in Germany been transpiring? - Management indicated that they launched operations in Germany about a year ago and signed 70 brokers, with a strong interest in their model [21][22] Question: Is capital markets activity sustainable? - Management believes there is a significant runway for growth in Europe and remains bullish on capital markets despite potential uncertainties [25] Question: What are the expectations for adjusted free cash flow in 2025? - Management indicated a conversion ratio of about 65% to 85% depending on investment levels, with a focus on hiring talent and potential M&A [62][63] Question: What are the growth rates expected in the second half? - Management expects management and leasing businesses to grow in the high single digits to low double digits, while capital markets may see mid to high teens growth [50] Question: Are there any impacts from the mayoral race in New York City? - Management stated it is too early to tell, but emphasized New York's resilience and strong talent pool [58][59]

Financial Data and Key Metrics Changes - Total revenues increased by 20% to $759.1 million compared to $633.4 million in the previous year [10] - Adjusted EPS rose by 41% to $0.31 from $0.22 [13] - Adjusted EBITDA was $114 million, up 32.1% from $86.3 million, with an adjusted EBITDA margin improvement of 139 basis points to 15% [13] - Adjusted free cash flow for the twelve months ended June 2025 was $228 million, a 121.4% improvement year over year [15] Business Line Data and Key Metrics Changes - Management services, servicing, and other revenues increased by 13.6%, driven by approximately 30% growth in valuation and advisory business [10] - Leasing revenues grew by 13.8%, led by double-digit growth in retail volumes and improving office activity in key markets [10] - Capital markets revenues surged by 37.9%, reflecting a 135% increase in total debt volumes [11] - Investment sales volumes increased by 26%, outperforming the industry average of approximately 11% [12] Market Data and Key Metrics Changes - Newmark was ranked as the number one office broker in the U.S. for the first half of 2025 [8] - The company improved to number three among global sales brokers across all property types based on preliminary figures [8] - The company gained market share in capital markets and expanded its international platform, particularly in Europe and Asia [9][23] Company Strategy and Development Direction - The company is focused on expanding its occupier solutions and leasing footprint globally, providing comprehensive real estate solutions in nearly 100 countries [6] - Newmark is pivoting towards growth capital and M&A opportunities in the second half of the year, particularly in management services [25][66] - The company emphasizes organic growth and is building a diversified integrated platform to serve corporate clients [27][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the capital markets activity, indicating a strong pipeline and potential for continued growth [21][54] - The company raised its full-year outlook for 2025, expecting total revenues between $3.05 billion and $3.25 billion, and adjusted EPS between $1.47 and $1.57 [16] - Management noted that New York City remains resilient despite potential political uncertainties, emphasizing the city's unique talent pool [58] Other Important Information - The company introduced a new reporting metric, adjusted free cash flow, to provide better insight into cash generation [14] - Total expenses for adjusted earnings increased by 18.4%, reflecting growth initiatives and higher pass-through costs [12] Q&A Session Summary Question: How has the opportunity in Germany been transpiring? - Management indicated that they launched operations in Germany about a year ago and signed 70 brokers, with a strong interest in their model [19][20] Question: Is capital markets activity sustainable? - Management believes they have a diversified mix of services and a significant runway for growth in Europe and Asia [21][23] Question: What are the expectations for adjusted free cash flow in 2025? - Management indicated a conversion ratio of about 65% to 85% depending on investments in the business [62] Question: What are the criteria for M&A? - The company focuses on bolt-on acquisitions that align with their platform and enhance recurring revenue opportunities [66]

Core Viewpoint - Newmark Group (NMRK) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.22 per share a year ago, indicating a positive earnings surprise of +19.23% [1] Financial Performance - The company achieved revenues of $759.11 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.68%, compared to $633.38 million in the same quarter last year [2] - Over the last four quarters, Newmark Group has consistently exceeded consensus EPS estimates and topped revenue estimates three times [2] Stock Performance - Newmark Group shares have increased approximately 12.7% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.38 for the coming quarter and $1.45 for the current fiscal year, with revenues expected to be $746.65 million and $3.05 billion respectively [7] - The Zacks Rank for Newmark Group is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Real Estate - Operations industry, to which Newmark Group belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Q2 2025 - Total revenues increased by 19.9% to $759.1 million compared to $633.4 million in Q2 2024[7] - GAAP net income for fully diluted shares increased by 39.8% to $28.8 million from $20.6 million in Q2 2024[7] - Adjusted Earnings per share (EPS) increased by 40.9% to $0.31 from $0.22 in Q2 2024[7] - Adjusted EBITDA increased by 32.1% to $114.0 million from $86.3 million in Q2 2024[7] Financial Performance - YTD 2025 - Total revenues increased by 20.7% to $1,424.6 million compared to $1,179.9 million YTD 2024[7] - GAAP net income for fully diluted shares increased by 916.1% to $16.1 million from $(2.0) million YTD 2024[7] - Adjusted Earnings per share (EPS) increased by 40.5% to $0.52 from $0.37 YTD 2024[7] - Adjusted EBITDA increased by 35.7% to $203.2 million from $149.8 million YTD 2024[7] Business Segments - Management Services, Servicing Fees & Other revenues increased by 13.6% to $298 million in Q2 2025 compared to $263 million in Q2 2024[16] - Leasing & Other Commissions revenues increased by 13.8% to $237 million in Q2 2025 compared to $209 million in Q2 2024[16] - Capital Markets revenues increased by 37.9% to $223 million in Q2 2025 compared to $162 million in Q2 2024[16] Balance Sheet & Cash Flow - Adjusted Free Cash Flow (AFCF) increased by 148% to $95.9 million in Q2 2025 compared to $38.7 million in Q2 2024[35] - Adjusted Free Cash Flow (AFCF) increased by 121% to $228.0 million TTM 2Q 2025 compared to $103.0 million TTM 2Q 2024[35] - Net leverage ratio as of June 30, 2025, was 1.4x, with TTM Adjusted EBITDA of $498.7 million[12, 28]

/////////;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; Newmark Reports Second Quarter 2025 Financial Results and Raises Full Year Guidance NEW YORK, NY - July 30, 2025 - Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, today reported its financial results for the three and six months ended June 30, 2025, and declared its quarterly di ...

Conference Call to Discuss Results Scheduled for 10:00 a.m. ET Today NEW YORK, July 30, 2025 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, today, reported its financial results for the three months ended June 30, 2025, and declared its quarterly dividend. ABOUT NEWMARK Newmark Group, Inc. (Nasdaq: NMRK), together with its subs ...